Effect of Gender Rules on Car Insurance Prices

We previously wrote about the ban on gender discrimination on car insurance which came into effect in the EU on Decmber 21st 2012.

See   https://www.moneyguideireland.com/gender-rules-and-insurance-premiums.html

The changes were expected to bring about price increases for younger women and car insurance price drops  for younger males . In the past – because young males had a bigger chance of being involved in accidents – their premiums were much higher than those for young females.
Back in  June 2012 we did a small comparison of insurance prices for young drivers with provisional licences.
See  https://www.moneyguideireland.com/comparison-of-car-insurance-for-learner-drivers.html
In June we saw car insurance price differences of  just over €1700  a year when comparing male versus female quotes for the same car and circumstances.

This week we did another quick check with AA Insurance and Liberty Insurance – a couple of the online insurers that will quote for young provisional licence holders.

As expected – the gap between male and female prices has now been removed – both were quoted the same amount in all cases.

Back in June the AA quoted €3241 for Third Party insurance a 20 year old male provisional driver . This  week (Jan 2013) the same aged male driver in the same car was quoted €2937 – a drop of €307 . The female driver was also quoted €2937 in Jan 2013 – but back in June 2013 the same aged female was given a quote of  €1530. This is a massive increase of  €1407 a year – almost 100% increase.

Liberty Insurance also had similar price changes – with a male 20 year old provisional licence holder being quoted €3546 in Jan 2013 and €4899 in June 2012. That is a drop of €1353 a year .